Mark Zuckerberg To Make Nearly $1 Billion From Facebook's IPO

Poornima Gupta and Gerry Shih

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By Poornima Gupta and Gerry Shih

SAN FRANCISCO (Reuters) - The rich are going to get richer when Silicon Valley's biggest IPO starts trading.

Facebook is only getting about half -- or $5.6 billion -- of the roughly $10.6 billion it plans to raise via a mega IPO. The other half, or about $4.9 billon, is going to a handful of inside investors -- many Silicon Valley notables.

And Mark Pincus, co-founder of the gaming company Zynga, is set to get his second payout in six months. He stands to make almost $32 million, on top of his take when the social gaming giant he co-founded went public last year.

The largest seller is Accel Partners, which will make about $1.2 billion if the shares sell at the $31.50 mid-point of an indicative price range. Zuckerberg, who started Facebook in 2004 from his Harvard dorm room, is selling the next largest chunk of shares worth a little under $1 billion.

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View the slideshow to see some of the biggest risks outlined by Facebook in its pre-IPO filing with the SEC.

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BEFORE YOU GO

The Biggest Risks To Facebook's Business

PHOTO GALLERY

The Biggest Risks To Facebook's Business

Mark Zuckerberg To Make Nearly $1 Billion From Facebook's IPO

The Biggest Risks To Facebook's Business

The Biggest Risks To Facebook's Business

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Mark Zuckerberg Controlling Too Much

Perhaps the most eye-popping risk listed in the S-1 is the idea that Mark Zuckerberg's bad decision-making could lead to a decline in company value. Along with "users fleeing" and "decline in advertising revenue," the following was listed as a major risk factor:
<strong><em>Our CEO has control over key decision making as a result of his control of a majority of our voting stock.
</em></strong>
Zuckerberg owns 58 percent of Facebook stock, which means that he "has the ability to control the outcome of matters" that come before stockholders. Furthermore:
As a stockholder, even a controlling stockholder, Mr. Zuckerberg is entitled to vote his shares, and shares over which he has voting control as a result of voting agreements, in his own interests, which may not always be in the interests of our stockholders generally.
Should stockholders fear the man who controls the company they hold stock in?